NYSE board may sue former boss

THE board of the New York Stock Exchange (NYSE) will this week weigh up a damning confidential report into the huge pay package that triggered the departure of former head Dick Grasso.

Interim chairman John Reed, new chief executive John Thain and their fellow directors will consider the paper at a meeting on Thursday, and may take legal action against Grasso in a bid to recover some of the money.

The report was drawn up by former federal prosecutor Dan Webb, who interviewed dozens of NYSE officials to determine how Grasso negotiated his $188m (£105m) compensation deal.

The board's decision is likely to be regarded as a key test of its willingness to respond to the scandal, and establish itself as a reinvigorated guardian of the exchange's reputation and practices.

Grasso quit last September after details emerged of his enormous pay package, plunging the NYSE into turmoil.

Investors have urged that the paper be made public. 'This case is about more than one person - it's about restoring public trust in the NYSE,' said California State Controller Steve Westly in a letter to Reed.